EU-Andorra agreement: will tobacco prices rise?

Short answer: for now, nothing changes in the price of tobacco in Pas de la Case. The association agreement between the European Union and Andorra was signed on 19 October 2026 in Brussels, but it is not in force: the European Parliament, a consultative referendum in Andorra and several ratifications are still to come. Taxation is outside the scope of the agreement, tobacco enjoys a 30-year transitional period, and Andorra has committed not to widen the existing price differentials with its neighbours, which is not the same as raising prices.

The question is being asked in the local press: on 30 October 2026, La Dépêche (Ariège) ran a headline about "the beginning of a new political relationship" and asked whether tobacco prices would rise after the agreement. Here is what can be established from public sources, and what remains unknown.

What was signed, and when

• On 16 July 2026, the Council of the EU approved the signing and provisional application of the association agreements with Andorra and San Marino (EUnews).
• On Monday 19 October 2026, the agreement was signed in Brussels, for Andorra by head of government Xavier Espot and for the EU by trade commissioner Maroš Šefčovič (Toute l'Europe, Catalan News). Negotiations had lasted over ten years; the political agreement dated from December 2023.
• The agreement lets Andorra take part in the single market without joining the EU or the Schengen area, adopting much of EU law with negotiated derogations. Andorra keeps its own border controls, with a separate arrangement that preserves the absence of checks with France and Spain (Catalan News).

What the text provides for tobacco

Tobacco is one of the "sensitive" sectors with a 30-year transitional period, according to Toute l'Europe and Catalan News (15 years for financial services, 7 for telecommunications). Andorra's commitments are set out in its declaration on the tobacco sector, annexed to the Council's proposal for a decision of September 2024 (Council of the EU document ST 9493/2024 ADD 14):

• Not widening existing price differentials. "Given the current price differentials (taxes included)", Andorra commits not to increase the tobacco price differentials, taxes included, that existed on the date the agreement was initialled, compared with the neighbouring Member State where prices are lowest.
• Applying EU tobacco law and joining the WHO Framework Convention on Tobacco Control and the protocol on illicit trade.
• Strengthening the fight against fraud and smuggling, including cooperation with the EU and the two neighbouring states, and monitoring the quantities produced, imported, sold and exported.
• Offsetting lost revenue. During the transitional period, every revenue loss caused by lower customs duties must be offset by other state revenue.
• Taxation out of scope. The declaration recalls that taxation is outside the scope of the agreement; Andorra will "examine, where appropriate" whether to draw on EU legislation on tobacco taxes. That is an examination, not an obligation.

This declaration dates from 2024. We have not compared it line by line with the final text signed on 19 October 2026.

So, will tobacco prices rise?

In practice, the most cautious reading is this: the agreement does not schedule an increase, but it creates a framework in which the price gap with neighbours must not widen. If prices rise there (for example because of the ongoing revision of EU tobacco rules: the Commission's consultation closed on 14 August 2026 and the European Parliament adopted its position on excise duties on 17 June 2026, according to our article on smuggling), the question of the gap could come up again. For now these are only hypotheses.

What remains before it enters into force

1. European Parliament consent, which the Council must request after signing (Toute l'Europe, Catalan News).
2. Consultative referendum in Andorra: the date is not set; Catalan News mentions a possible vote in January, while Toute l'Europe says it will take place after the elections. Sources differ.
3. If "yes" wins, approval by the Andorran parliament by a two-thirds majority, then final ratification by the Council of the EU, and the consent of the co-princes (the French president and the Bishop of Urgell), according to Catalan News.

Provisional application: the Council of the EU had authorised it in July 2026, but the Andorran government has said it is impossible without full ratification, referendum included (Alto., April 2026). The referendum result is not a given: part of Andorra's political class opposes the agreement.

Frequently asked questions

Will tobacco prices rise because of the EU-Andorra agreement?

Not at this stage. The agreement is signed (19 October 2026) but not in force, and taxation is outside its scope. Andorra commits not to widen the existing price differentials with the neighbouring state with the lowest prices; the text sets neither an increase nor a timetable.

When will the agreement enter into force?

No date has been announced. It needs European Parliament consent, a consultative referendum in Andorra, approval by the Andorran parliament by a two-thirds majority and final ratification. Sources differ on the referendum timetable.

Do the limits for entering France with tobacco change?

No, as of today: the limit remains 300 cigarettes (1.5 cartons) per adult. See the customs page.

What does the 30-year transitional period for tobacco mean?

Tobacco enjoys a 30-year derogation. During that period, Andorra's declaration provides that revenue losses caused by lower customs duties are offset by other state revenue.

Sources

• Toute l'Europe: signing on 19 October 2026, derogations (tobacco: 30 years), ratification.
• Catalan News (19 October 2026): content of the agreement, transitional periods, ratification steps.
• EUnews (16 July 2026): Council decision on signing and provisional application.
• Council of the EU, document ST 9493/2024 ADD 14: Andorra's declaration on the tobacco sector (September 2024).
• Le Monde du Tabac / AFP (30 June 2018): commitments in the agreement on the movement of goods.
• Alto.: provisional application and referendum (April 2026).

Article written on 30 October 2026 from public sources; we will update the page at each stage (European Parliament, referendum). This is not legal or tax advice.